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Price of Water- How is it in your city? ... This may surprise you

By
Real Estate Agent with Chuck Willman 9334967-SA00

Water, water, every where,

And all the boards did shrink;

Water, water, every where,

Nor any drop to drink.

- Samuel Taylor Coleridge

The Rime of the Ancient Mariner - 1797

 

These are among the memorable lines from the classic epic poem. Even if you're at sea- with water in every direction, it doesn't mean it's drinkable.

I live near Phoenix, Arizona. It's dry and surrounded by desert. We're in a drought.

We live "next door" to California. They're also experiencing a drought.

Unlike our desert, theirs is next to an extremely large body of water.

This water is everywhere- but, in its natural state, undrinkable.

Normal market forces dictate that rare commodities have higher prices. This is not the case with water.

Check out this 2007 study from the Portland Water Bureau:

 

metro water - from Portland Water Bureau

 

Does this make sense? Should wet Seattle pay more than twice as much for water than the dry desert city of Phoenix?

Phoenix has a vast network of lakes, dams and waterways. Some are natural and some are man-made, dating as far back as the ancient Hohokams who developed hundreds of miles of irrigation canals. We've done additional work since then.

For as scarce as water can be, Arizona has managed to find inexpensive ways to store and deliver it. This commodity, and its availability, are a constant concern for the many people who live here. It will always be a "front burner" issue for environmentalists and politicians... not just here- but in every city in the nation.

I don't intend this post to be about those environmental issues- or I could write for hours. This is simply a chart showing some surprising data. That is- the presence of water is not always corollary to the price of it.

Comments(9)

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Rich Dansereau
Positive Real Estate Professionals - Knoxville, TN

It is quite surprising that Arizona water is so cheap and Seattle water is so expensive. Wonder if that explains why Starbucks charges so much for coffee <<<smile>>> I know in Atlanta, water was quite pricey.

Aug 08, 2008 01:19 PM
Justin Williams
Independent - Virginia Beach, VA
Loan Officer

Wow that is very interesting indeed.  You would think it would be the other way around, what interesting data you brought up.

Aug 08, 2008 02:26 PM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

Very interesting indeed!  I wonder where Idaho would be on that list?

Aug 08, 2008 05:23 PM
Doreen McPherson
Homesmart ~ Scottsdale ~ Tempe - Tempe, AZ
Phoenix Arizona Real Estate ~

Hi Chuck,  What is interesting about Seattle is that, even though, by Arizona standards, it's really wet there, they have drought conditions.  I was shocked when someone I used to work with told me they were restricted as to when they could water their lawns and yards.  I was surprised they even had to water.  (this was several years ago, don't know the situation there now.) 

Besides, everything in Seattle cost more than it does here.

Aug 08, 2008 05:48 PM
Debra Kukulski, Broker Associate
RE/MAX Suburban - Cary, IL
SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

Very interesting.  When I read your comment.....

"Normal market forces dictate that rare commodities have higher prices. This is not the case with water."

......I could not help but relate this to the current real estate market, which makes it a great market for buyers right now.

 

Aug 09, 2008 02:26 AM
Steve Hoffacker
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor

Chuck,

In our area, there have been mandatory water use restrictions and general conservation. As a result water usage (i.e., revenue) has been down. Solution: add a surcharge on every bill to offset the lower usage.

Steve

Aug 09, 2008 02:26 AM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

I am surprised by the data. Who would have ever thought that we would pay for bottled water like we do.

Aug 09, 2008 06:06 AM
Karl Nettgen
Century 21 Agate Realty - Gold Beach, OR

That make no sense to me...we have all the water yet Arizona is less expensive??

 

What gives

Aug 09, 2008 12:33 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I'm glad to say that we catch the rain water and use it in our household - therefore it's FREE.

Aug 11, 2008 08:42 PM